Bridgeline Digital shares plunge 55.54% premarket as financial struggles overshadow new AI client deal.

Bridgeline Digital (BLIN) plummeted 55.54% in premarket trading following the release of financial analysis highlighting severe profitability challenges and elevated bankruptcy risk. While the company announced the implementation of its AI-powered HawkSearch platform for a major U.S. distributor, improving search capabilities for high-volume catalogs, the market reacted strongly to disclosures of a 3-year revenue decline (-5.5%), -16.37% net margin, and an Altman Z-Score of -7.07 indicating distress. These metrics, coupled with liquidity concerns (current ratio of 0.7) and a Piotroski F-Score of 3, underscored operational and financial instability, overshadowing the product deployment news and driving a sharp sell-off.